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Free Employer Tool • Compliance Exposure

Unpaid Overtime Exposure Estimator

This is not a cost calculator; it is an exposure calculator. If overtime hours are being worked but not paid, this estimates what that could become if it turns into a wage claim, an audit, or a lawsuit.

This tool models exposure scenarios for planning purposes only. It is not legal advice, does not determine liability, and does not establish that liquidated damages or a three-year period would apply. If exposure appears material, have a wage-hour attorney or qualified consultant review the facts.

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How This Works

Methodology


How back wages are modeled

Weekly back wages equal unpaid overtime hours times the regular rate times 1.5, across affected employees. The FLSA's standard recovery period is two years of back wages; violations found to be willful can reach three years. This tool shows both as scenarios, at 104 and 156 weeks.

Liquidated damages

FLSA claims can carry liquidated damages equal to the back wages, effectively doubling the number, unless the employer shows good faith and reasonable grounds. This tool presents that as a scenario, not a certainty, because whether it applies is fact-specific.

Why the regular rate matters

Overtime is owed at 1.5 times the regular rate, which includes nondiscretionary bonuses, commissions, and most incentive pay, not just the base hourly wage. Employers who pay overtime only on base wage while paying production bonuses are accruing exposure even though every timesheet looks paid.

Common Questions

Frequently Asked Questions


Nobody has complained. Do I still have exposure?

Yes. Wage claims are frequently filed after separation, and DOL audits do not wait for a complaint. Exposure accrues silently week by week; the two-year window means today's practice is already building the claim value for 2028.

What is the most common source of unpaid overtime?

Off-the-clock work: pre-shift setup, post-shift closing, working through automatically deducted meal periods, and after-hours phone use. None of it feels like overtime to anyone until the hours are reconstructed in a claim.

What does willful mean here?

Broadly, that the employer knew or showed reckless disregard for whether its practice violated the FLSA. Being told about a problem and not fixing it is the classic path to a willfulness finding, which is why running this estimate should be followed by action, not filing.

What should I do if this number is large?

Stop the accrual first: fix the timekeeping or classification practice going forward. Then get qualified advice on correcting the past, because how a correction is handled affects both the exposure and employee trust.

Go Deeper

Related Answers and Services


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